Reluctant Tango Tale —Coinbase and Government: 101
This tale revolves around the frantic dance between governments and the burgeoning crypto industry, exemplified by the rocky relationship between the United States government and Coinbase, one of the largest and most beloved public cryptocurrency exchanges.
And so the dance begins:
Once long ago, in a land of red tape and bureaucracy, the government observed the rapid rise of cryptocurrencies with skepticism and wariness. And in the rising fog, the fairy of concerns appeared at the Capital City.
In her heart, the fairy could not deny the potential of this new form of money, yet she’d refused to embrace it and instead took on arms to guard against the white horse, which belonged to everyone and no one in particular. A gorgeous creature, yet the fairy had cause to fear its’ twin, the dark horse in crypto land.
The dark horse in Cryptoland:
Uprooted, wild, decentralized, and volatile, a voracious beast trampling down well-established financial systems, pounding all to dust into antiquity. Can it be tamed?
As the fairy of the government grappled with challenges so significant, she chose to wield the weapon of regulation, aware that the beautiful beast presented a beacon of hope for many. But with a cost.
In the cloak of anonymity, way down below, in the deep crevices of the unknown, doors would open for tax evasion, money laundering, and illicit activities.
As the story goes, she needed to control the dark beast before it galloped away from the Federal Reserve’s (FED) power.
Knowing that geopolitical conflicts and natural disasters are outside the Fed’s control, so is the popularity of Crypto.
And in the process, beyond “Know Your Customer” (KYC), she clamped down on centralized crypto exchanges, like Coinbase, Binance, or Kraken, all while their owners begged for more practical action to protect and serve their customers.
Yet, instead of spreading joy by fostering growth and innovation, some unnecessary government-regulatory actions caused hopelessness and despair. Calling for Coinbase and others to keep fighting some senseless mandates or to flee the USA altogether.
Slowly, disputes flared up so hot in the frenzied Tango — between the thousand islands of crypto land and the central mainland — that our great nation lost sight of conquering the global crypto market.
All the while, the good companies kept steadfast and complied with ever-increasing costs way beyond fighting the creatures below — and fighting in courts — that only a few kept dancing. Including Coinbase, eager to work in a centralized environment with the government while preserving the merits of the white horse.
And so the citizens of the land, once excited about Crypto by the promise of financial freedom and accessibility, now found themselves discouraged by barriers erected to serve them. Fear increased. The adoption of cryptocurrency slowed, and the dream of a decentralized financial future faded away.
Yet, even in the darkest hour, a glimmer of hope emerged: after all, it’s still a fairytale:
Rep. Patrick McHenry said the House Financial Services Committee and the Agriculture Panel would meet jointly in May as they work on crypto legislation.
Visionaries and advocates from both sides realized that the relentless tug-of-war between the FEDs and the crypto industry was not sustainable. Finally recognizing that by working together, they could harness the true potential of cryptocurrencies while mitigating the risks of the dark creatures that had caused the government’s and their fairy’s initial reluctance.
So, a new chapter began, with the protagonists striving for a delicate balance between the centralized control of the traditional financial system and the decentralized peer-to-peer trustless exchange on the blockchain.
- They sought to build bridges, fostering collaboration on cross-border transactions and leveraging the accessibility of cryptocurrencies to promote financial inclusion.
- As a result, public-private partnerships bloomed, driving innovation in blockchain technology and digital currencies while addressing critical issues such as scalability, security, and energy efficiency.
- By collaborating with crypto companies, they developed robust anti-money laundering (AML) and counter-terrorism financing (CTF) policies and practices, ensuring that cryptocurrencies were used for legitimate purposes.
- Education and awareness programs were initiated, helping the general public better understand the benefits and risks associated with cryptocurrencies. This fostered responsible usage and investment as citizens became more knowledgeable about the potential of this new form of money.
- As trust between the government and the crypto industry grew, so did the possibilities for collaboration. The government even began exploring the idea of creating a Central Bank Digital Currency (CBDC), a digital version of the US dollar, which could bridge the traditional financial system and the world of cryptocurrencies.
Fast and smooth movements made their dance — and the crypto industry and the regulatory landscape evolved together.
Clear and balanced regulations were established to protect consumers and investors without strangling innovation. As a result, everyone in the land was happy.
Its’ citizens prospered because they lived and worked in a predictable environment conducive to business. The fog was lifted, and honest companies could operate and grow and invest in Crypto, fearing not.
In this tale of the reluctant Tango, the government and crypto industries transform from a rigid to a harmonious partnership:
And so, the story of the reluctant dance between the government and the crypto industry continues to unfold, with each step bringing new challenges and opportunities. As the music plays on, the two partners grow more comfortable in their roles, learning from one another and adapting to the ever-changing rhythm of innovation and progress.
The happy end—If it were true:
The tale of the government and the crypto industry serves as a reminder that embracing change and seeking collaboration is the key to thriving in a rapidly evolving world.
As the curtain falls on this story, we are left to wonder: what new adventures await our protagonists as they continue their dance into the future? We will see, but one thing is sure — together, they have the potential to redefine the financial landscape and create a world where the strengths of both centralized and decentralized systems can coexist in harmony.
What ending would you like to see in this story? Please comment :)
